The economic effect of immigration policies: analyzing and simulating the U.S. case

B-Tier
Journal: Journal of Economic Dynamics and Control
Year: 2020
Volume: 114
Issue: C

Authors (2)

Chassamboulli, Andri (not in RePEc) Peri, Giovanni (University of California-Davis)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper we analyze the economic effects of different immigration policies using a model that incorporates economic and policy features crucial to understanding the migrant flows into the US. We differentiate among the most relevant channels of immigration to the US: family-based, employment-based and undocumented. Moreover we explicitly account for earning incentives to migrate and for the role of immigrant networks in generating immigration opportunities. Hence, we can analyze the effect of policy changes through those channels. In our simulations comparing long-run steady states, highly skilled employment and unskilled immigrants generate larger surplus to US firms than natives do. Hence policies restricting their entry either directly or indirectly have a depressing effect on job creation and, in turn, on native labor markets. Our analysis gives new insights into the effect of policies as it accounts for the endogenous immigration response which is overlooked by most existing models.

Technical Details

RePEc Handle
repec:eee:dyncon:v:114:y:2020:i:c:s016518892030066x
Journal Field
Macro
Author Count
2
Added to Database
2026-01-25